Determination of Electricity Distribution Cost of Narayanganj PBS-1

Abstract

This thesis is on “Study on Determination of Electricity Distribution cost of Narayanganj PBS-1”. Electricity distributions convey information on internal system operation to the actors involved. Electricity pricing is, then, of major importance both in liberalized and regulated systems. Most electricity consumers interact with the industry only through the price they pay for these service. Consequently, good tariff design reflects industry regulation as a whole and is the instrument used to provide consumers with the right signals. Day by day the challenge becomes really to harder to meet up power crisis, especially to meet up power crisis in rural area. So government formed Rural Electrification Board (REB) from Bangladesh Power Development Board (BPDB) to fulfill the power demand for village people. Tariff rate of electrical power depends on transmission and distribution cost. This thesis study on electricity import of Narayanganj PBS-1 consumer levels and their unit consumption in different season and cost associated electricity supply. This Paper also finds the total Distribution cost, Distribution cost per unit, supply cost, supply cost per unit, total revenue, total revenue per unit, energy purchase cost, system loss, surplus etc. This paper will also be helpful to get knowledge a stable electricity distribution structure to meet the future electricity crisis of Bangladesh. Electricity distribution cost is important issue in our country. Because electricity tariff rate and distribution cost are related with our economic growth. Although distribution costs are usually the largest part of the access tariff (or use of system charge), there is not a universally accepted methodology for distribution pricing. The earliest attempts at cost allocation conformed what is now known as the accounting approach, based on business accounting. In recent years, the proposals have focused on two approaches: the application of long-term marginal (or incremental) cost and the cost-causality principle. Although the former aims to achieve a better economic signal, because of the difficulties surrounding its implementation, the most usual solution applied in practice draws more heavily from the causality principle